Buy Camlin Fine Sciences, target price Rs 200: Axis Securities
Camlin Fine Sciences Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 2105.43 Crore) operating in Chemicals sector.
By ETMarkets.com | Updated:
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Axis Securities has buy call on Camlin Fine Sciences with a target price of Rs 200. The current market price of Camlin Fine Sciences is Rs 164.65. Time period given by analyst is one year when Camlin Fine Sciences Ltd. price can reach defined target.
Camlin Fine Sciences Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 2105.43
Crore) operating in Chemicals sector.
Camlin Fine Sciences Ltd. key Products/Revenue Segments include Fine Chemicals, Traded Goods, Service Income, Export Incentives, Commission and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 311.84 Crore, down -8.65 % from last quarter Total Income of Rs 341.38 Crore and up 20.82 % from last year same quarter Total Income of Rs 258.09 Crore. Company reported net profit after tax of Rs -3.74 Crore in latest quarter.
Investment Rationale
The company’s long-term story remains intact supported by 1) Capacity expansion, 2) Introducing value-added downstream products, 3) Lockheed Martin deal, 4) Entering the Omega-3 fermentation business through AlgaIRNutra Pharms and, 5) Scaling up of capacity utilization at the Dahej Facility to 100% levels. However, while the company’s medium to long-term prospects appears fair, the brokerage believes the near term uncertainty and RM headwinds may weigh on its overall profitability. It thus, revises EBITDA Margin estimates for FY22/23/FY24 downwards leading to a TP revision to Rs 200/share (Rs 215/share earlier). It maintains a BUY rating on the stock. Key risks – a) Slower-than-expected ramp-up in commissioning of Capex projects, b) Volatility in RM prices and forex, c) COVID-led uncertainty and business disruption.
Promoter/FII Holdings
Promoters held 21.61 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.01 per cent, DIIs 19.03 per cent.
Camlin Fine Sciences Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 2105.43
Crore) operating in Chemicals sector.
Camlin Fine Sciences Ltd. key Products/Revenue Segments include Fine Chemicals, Traded Goods, Service Income, Export Incentives, Commission and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 311.84 Crore, down -8.65 % from last quarter Total Income of Rs 341.38 Crore and up 20.82 % from last year same quarter Total Income of Rs 258.09 Crore. Company reported net profit after tax of Rs -3.74 Crore in latest quarter.
Investment Rationale
The company’s long-term story remains intact supported by 1) Capacity expansion, 2) Introducing value-added downstream products, 3) Lockheed Martin deal, 4) Entering the Omega-3 fermentation business through AlgaIRNutra Pharms and, 5) Scaling up of capacity utilization at the Dahej Facility to 100% levels. However, while the company’s medium to long-term prospects appears fair, the brokerage believes the near term uncertainty and RM headwinds may weigh on its overall profitability. It thus, revises EBITDA Margin estimates for FY22/23/FY24 downwards leading to a TP revision to Rs 200/share (Rs 215/share earlier). It maintains a BUY rating on the stock. Key risks – a) Slower-than-expected ramp-up in commissioning of Capex projects, b) Volatility in RM prices and forex, c) COVID-led uncertainty and business disruption.
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Promoter/FII Holdings
Promoters held 21.61 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.01 per cent, DIIs 19.03 per cent.
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